BeNewz
Related Articles
BeNewz Report
ISLAMABAD: A sub-committee on Bankruptcy Law and the Prevention of Undue Harassment by State Authorities has proposed major relief measures for companies facing winding-up orders.
The committee has recommended key amendments to the Corporate Rehabilitation Act, 2018, including the removal of the eligibility threshold based on receivables and the introduction of a formal judicial mechanism to issue stay orders.
It also suggested extending relief to companies benefiting from State Bank of Pakistan’s Circular No. 29 and proposed establishing a comprehensive system for asset valuation and mediation.
The recommendations were discussed in a high-level meeting chaired by Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan. The meeting focused on reforms in bankruptcy law and ways to prevent undue harassment by state institutions.
The meeting was attended by PM’s Coordinator Rana Ehsan Afzal, along with representatives from the Pakistan Business Council, Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), various Chambers of Commerce, the Anti-Money Laundering Authority, and other stakeholders.
“This policy package will offer critical relief to affected companies,” said Haroon Akhtar Khan. “The updated bankruptcy law will act as a supportive legal framework to ensure industrial stability.”
The sub-committee also recommended changes to the Corporate Restructuring Companies Act, 2016, highlighting that delays in the Corporate Rehabilitation Board’s functioning have been caused by strict appointment rules and budget limitations.
SAPM Haroon Akhtar Khan stressed the importance of collaboration, saying, “Banks and borrowers will now work together in a cooperative framework.”
Meanwhile, the sub-committee on Undue Institutional Harassment also submitted its proposals. These include developing a legal framework to safeguard the SECP’s autonomous role and decisions, and promoting foreign investment in a non-political, interference-free environment.
“Prime Minister Shehbaz Sharif’s vision is clear: to revive sick industrial units and eliminate undue harassment from state authorities,” said Haroon Akhtar Khan. He praised the sub-committees for their dedicated efforts and commitment to creating business-friendly reforms.
